Amazon brings back ‘no class-action’ clause: Why customers may have to fight disputes outside court
Amazon reinstated a clause in its user agreement that requires customers to resolve disputes through arbitration instead of class-action lawsuits.Summary
Amazon.com Inc. has reintroduced a clause in its user agreement that prohibits customers from filing class-action lawsuits against the company. This move provides Amazon with greater legal protection against plaintiffs' attorneys, a provision it had removed five years ago. In an email sent to customers, the company stated that a new "arbitration agreement and class-action waiver" will require shoppers to resolve disputes outside of court, though they may still file small-claims cases. The changes are effective immediately, and customers agree to the terms by continuing to use the company's services. Amazon removed a similar clause in 2021 amid legal challenges related to its Alexa devices. The user-agreement update is not necessarily binding in court, as plaintiffs' attorneys could still seek class-action lawsuits, and a judge would determine if the agreement prevents them from doing so. Amazon stated that reinstating the arbitration clause offers a fast, cost-effective way to resolve disputes while still allowing customers the option of going to small claims court.
(Source：Livemint)